ENERGY LAW - FRANCE - November, 28th 2005 French Energy Prepared by: Theresa Jordan Natalia...

ENERGY LAW - FRANCE - NovemENERGY LAW - FRANCE - November, 28th 2005ber, 28th 2005

French EnergyFrench Energy

Prepared by:Theresa JordanNatalia KalitynskaSabrina Woodward Laetitia Youssouffa


French EnergyFrench Energy AgendaAgenda1.1. Previous Situation ______Previous Situation ______

2.2. European Law ___________European Law ___________

3.3. EDF Privatization _________EDF Privatization _________

4.4. GDF Privatization ____GDF Privatization ____

5.5. Nuclear Power __________ Nuclear Power __________


French Legal SituationFrench Legal Situation

State Monopolistic State Monopolistic SituationSituation


Energy State Monopolistic Energy State Monopolistic SituationSituation

• 1946 French Law of Nationalization 1946 French Law of Nationalization of Electricity and Gasof Electricity and Gas

• Government Monopoly over French Government Monopoly over French Energy:Energy:

Production, Transportation, Production, Transportation, Distribution, Importation and Distribution, Importation and Exportation of Electricity & GasExportation of Electricity & Gas

• Creating EDF-GDF Creating EDF-GDF


NewNew French Legal French Legal

SituationSituation

EU Law InterventionEU Law Intervention


EU DirectivesEU Directives

• The 2003/ 54-55 Directive on Common The 2003/ 54-55 Directive on Common Rules of Interior Market of Electricity/GasRules of Interior Market of Electricity/Gas

Replacing first Directives opening EU Replacing first Directives opening EU Energy Energy Markets Markets

– – Electricity: December 19,1996Electricity: December 19,1996

– – Gas: June 22, 1998Gas: June 22, 1998


French EU Law French EU Law ImplementationImplementation

• ElectricityElectricity– February 2000 French Law on Modernization and February 2000 French Law on Modernization and

Development of Public Electricity MarketDevelopment of Public Electricity Market

• GasGas– January 3, 2003 French Law on Gas and January 3, 2003 French Law on Gas and

Electricity Markets and Energy Public ServiceElectricity Markets and Energy Public Service


EU Liberalization EU Liberalization RequirementsRequirementsElectricity Market Electricity Market

DirectiveDirectiveGas Market DirectiveGas Market Directive

YearYear Market Opening Market Opening %%

YearYear Market Opening Market Opening %%

19991999 26%26%

20002000 28%28% 20002000 20%20%

20032003 33%33%

20042004 70%70% 20042004 70%70%

20072007 100%100% 20072007 100%100%


EDF PrivatizationEDF Privatization

Electricite De FranceElectricite De FranceFrench ElectricityFrench Electricity


Changes NeededChanges Needed

• EPIC v. SAEPIC v. SA((Etablissement Public Industriel et Commecrcial v. Societe Etablissement Public Industriel et Commecrcial v. Societe Anonyme)Anonyme)

• Initial Public Offering of EDF SharesInitial Public Offering of EDF Shares– sold 15% of company November 2005 sold 15% of company November 2005


PrivatizationPrivatization

• Powernext Powernext – wholesale electricity exchangewholesale electricity exchange

• RTE (RTE (French Transmission Grid French Transmission Grid

ManagerManager))– third party network accessthird party network access


CRECRE(Commission of Energy (Commission of Energy

Regulation)Regulation)

• Regulation authorityRegulation authority

• Oversees non-discriminatory access Oversees non-discriminatory access to the network to the network

• Monitors, authorizes, settles disputes Monitors, authorizes, settles disputes and, if necessary, lays down and, if necessary, lays down sanctions as EU Law requiressanctions as EU Law requires


Public ServicePublic Service

• 3 main purposes:3 main purposes:– To ensure low-income households get To ensure low-income households get

electricityelectricity– All regions receive electricity at same All regions receive electricity at same

ratesrates– Obliged to purchase electricity from Obliged to purchase electricity from

certain generation typescertain generation types

• Paid by all companiesPaid by all companies• Explicit charge to consumersExplicit charge to consumers


CompetitionCompetition

• CompetitorsCompetitors– CNRCNR– SNETSNET

• UnbundlingUnbundling


GDF PrivatizationGDF Privatization

Gaz De FranceGaz De FranceFrench GasFrench Gas


GDFGDF

• Changed to SA statusChanged to SA status

• IPO in June 2005 IPO in June 2005

• Grid operators must offer open accessGrid operators must offer open access

• CRECRE

• CompetitorsCompetitors– CFMCFM– GSOGSO


French Nuclear PowerFrench Nuclear Power

Political DebatePolitical Debate


Nuclear Power DebatesNuclear Power Debates

• Pillar of French energy politics. Pillar of French energy politics.

• La Hague: Reprocessing plant from La Hague: Reprocessing plant from Nuclear Waste Nuclear Waste

• Renewal of the French Nuclear Plants Renewal of the French Nuclear Plants

• ITER(ITER(International Thermo-Nuclear International Thermo-Nuclear Experimental Reactor). Experimental Reactor). This This international project under the international project under the auspices of the IAEA, in Cadarache, auspices of the IAEA, in Cadarache, Fr.Fr.


Energy Market OpeningEnergy Market Opening

• EDF – GDF in competition on their EDF – GDF in competition on their traditional market but not readytraditional market but not ready

• EDF – GDF Retirement issuesEDF – GDF Retirement issues=} Union power, major strikes=} Union power, major strikes

• 2007 Deadline, politically debated by 2007 Deadline, politically debated by French MPsFrench MPs

• EDF renationalized ?EDF renationalized ?


Des Questions?Des Questions?Any questionsAny questions??

Merci de votre attention!!!Merci de votre attention!!! Thank you for your attention!Thank you for your attention!

ENERGY LAW - FRANCE - November, 28th 2005 French Energy Prepared by: Theresa Jordan Natalia...

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